Everest Re adds investors to Mt Logan Re at 1 July
New investors injected capital into Mt Logan Re at 1 July, according to Everest Re's chief underwriting officer John Doucette.
Although the new capitalisation level was not specified, the firm disclosed at the end of the first quarter that Mt Logan's assets under management were above $400mn, including $376mn of third-party capital.
Speaking during the company's second quarter earnings call, Doucette said he believed that the sidecar structure added value for both Everest Re clients and shareholders.
"Our clients and brokers benefit from Everest being able to deploy more capacity on deals and layers which are attractively priced," he said, according to a Seeking Alpha transcript.
Everest Re wrote gross reinsurance premiums of $1.08bn in the second quarter, devolving $22.4mn to Mt Logan Re. Everest Re's top line increase from 2013 was led by its international book, where premiums jumped $106mn on a gross basis.
However, the reinsurer ceded more of this business than is typical for the rest of its portfolio - retaining 70 percent of gross international reinsurance premiums written in the quarter, compared to 96 percent in the preceding quarter.
Doucette told analysts that this trend of greater cessions could be expected to continue as it was principally due to new multi-line quota shares written for clients - which saw some premium retroceded back to the primary insurer.
Overall, despite its increased writing of cat premiums the reinsurer has kept its net risk appetite stable in the past six months, with net probable maximum losses not materially changed since January. The firm placed retro cover including its first cat bond, the $450mn Kilimanjaro Re, as well as industry loss warranty cover during the first half of the year.
CEO Dominic Addesso said that the firm was expanding into property cat business - which makes up about 25 percent of its total premiums - due to its use of retro and because transactions still exceeded hurdle rates despite the pressure on pricing.